It’s that wonderful season that only comes every two years - the Olympics.
We get to watch in awe as records are broken and superhuman feats are accomplished. Our thoughts turn to greatness and our hearts swell with pride in our fellow countrymen.
However, these athletes didn’t get to the top of their games by not being prepared. So, it’s also a great time to think about making our own futures great by ensuring we are prepared.
How do we do that? By ensuring we are saving by Olympic standards.
Gold Medal savings
- Six months’ worth of expenses in a liquid, readily accessible account (savings, money market, etc.)
- Maximum contribution to 401(k) plan and/or IRAs
- Maximum contribution to Health Spending Account (HSA) or Flexible Spending Account (FSA)
- Maximum contribution to 529 plans for children’s or grandchildren’s education (even if you think they won’t need it; you can use it later)
- Maximum participation in any company stock option plan
Silver Medal savings
- Four months’ worth of expenses in a liquid, readily accessible account
- Maximum contribution to 401(k) plan
- Some contribution to IRAs
- Maximum contribution to HSA or FSA
- Some contribution to 529 plans
- Some participation in any company stock option plan
Bronze Medal savings
- Four months’ worth of expenses in a liquid, readily accessible account
- Maximum contribution to 401(k) plan
- Some contribution to IRAs
- Maximum contribution to HSA or FSA
- Some contribution to 529 plans
- Some participation in any company stock option plan
Depending on your age, you may even be able to make catch-up contributions to some of these plans. Not all of these options may be available to you but if they are, you should take advantage of them while you can. You will save like a superstar and it will pay Olympic-sized results in the long run.
Old North State Trust, LLC (ONST) periodically produces publications as a service to clients and friends. The information contained in these publications is intended to provide general information about issues related to trust, investment and estate related topics. Readers should be aware that the facts may vary depending upon individual circumstances. The information contained in these publications is intended solely for informational purposes, is proprietary to ONST and is not guaranteed to be accurate, complete or timely.
Susan Willett is the director of trust services and oversees all aspects of trust administration for Old North State Trust, LLC. Old North State Trust, a North Carolina chartered trust company, provides: asset management services; income, estate and trust tax consulting; retirement planning and administration; and trustee and estate services to both individuals and businesses. Old North State Trust professionals have many years of experience and for over a decade have assisted clients in identifying and reaching their financial goals. For more information, visit www.oldnorthstatetrust.com or call 910-399-5470
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